The White House is preparing an executive order targeting cryptocurrency. According to several unnamed sources, this has been quoted by Bloomberg.
The report described the potential order as part of the Biden administration’s effort to establish a government-wide approach to regulating the relatively new sector. The Bloomberg report suggested that an order’s emphasis would be on instructing federal agencies to investigate and make recommendations:
“The proposed directive would instruct federal agencies to study relevant areas of crypto and make recommendations. The guidelines must touch on financial regulation, economic innovation and national security. So said the people who asked not to be named as they discussed plans still under discussion. The framework would touch a series of bureaucracies. Namely the Ministry of Finance and financial regulators to the Ministry of Commerce, the National Science Foundation and national security agencies.”
The report also noted that it is not clear whether the White House will go ahead with it. Instead, it might pursue more informal measures to achieve the same goal, despite a draft order that has circulated among various departments.
The rumor of this order comes at a time when many departments of the US government are paying unprecedented attention to the crypto sector. This includes the Securities and Exchange Commission, the Federal Reserve, and the Department of Justice. The authorities have all made statements. A number have announced reports related to crypto.
President’s impotence
President Biden cannot write new laws on cryptocurrency. That is the prerogative of Congress. But he can use executive orders to exercise considerable power over various agencies. He can do this by instructing them to prioritize certain activities over others. Biden may also provide guidelines regarding law enforcement.
The bigger strategy is likely to become apparent in the coming weeks. This could happen if government officials show more of their cards regarding US crypto priorities. The same goes for the White House. While the crypto industry has long been begging for clearer rules about what is legal under US law, when and if they come, the rules could prove damaging to the industry. The negative feelings about crypto that many top officials have expressed is the cause.